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Forex - EUR/USD hits fresh 16-month high after soft U.S. ISM data

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Forex Pros - The euro advanced to a fresh 16-month high against the U.S. dollar on Monday, after data showed that the rate of growth in the U.S. manufacturing sector slowed in April for a second successive month.

EUR/USD hit 1.4888 during U.S. morning trade, the pair's highest since December 7, 2009; the pair subsequently consolidated at 1.4886, gaining 0.54%.

The pair was likely to find support at 1.4762, the day's low and resistance at 1.5090, the high of December 4, 2009.

The U.S. Institute for Supply Management said its index of national factory activity fell to 60.4 in April from 61.2 the month before. Analysts had expected the index to decline to 59.7.

A reading above 50 indicates that activity increased, while a reading below 50 indicates that it decreased.

Earlier in the day, the dollar edged higher against the euro, boosted by news that that Al Qaeda leader Osama Bin Laden had been killed by U.S. Special Forces in Pakistan.

The greenback was boosted by the perception that that bin Laden's death could make the U.S. less subject to further terrorist attacks, but some analysts remained skeptical of whether it would reduce the security risks facing the U.S.

The euro was also higher against the pound, with EUR/GBP rising 0.61% to hit 0.8913.

Also Monday, a report showed that manufacturing activity in the euro zone expanded at the second-fastest rate since August 2000 last month.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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